The number of distressed homes in the Hampton Roads region, those that are either short sales or foreclosures, have significantly decreased. In June 2018, distressed homes accounted for just 7.89% of all residential settled sales. While this is a reduction of only 1.32% year-over-year, it is the lowest percentage since August 2008, when it was 6.53%. REIN began tracking distressed vs. total residential sales in June 2008 when the percentage was 5.25%, and the statistic peaked in March 2011 at 42.8%. Similarly, distressed homes accounted for only 9.48% of all residential active listings in June 2018, the second lowest recording since REIN began tracking the data in August 2009.
Residential active listings for the region were down 8.46% year-over-year in June 2018, with 10,133 available homes. This marks the 35th consecutive month that the area’s active inventory had declined year-over-year. Each of the region’s seven major cities (Norfolk, Virginia Beach, Portsmouth, Chesapeake, Suffolk, Hampton and Newport News) experienced decreased inventory, with Hampton and Norfolk registering the largest declines at 16.80% and 14.13% respectively.
June’s supply of residential home inventory in the region is currently 4.43 months, down 12.62% from the same period of time last year. This marks the 38th consecutive month that the supply of inventory has declined year-over-year, a trend that started in May 2015. Of the region’s seven major cities, six exhibit inventories below 5 months (Suffolk was the only major city above at 5.19 months). Virginia Beach and Chesapeake are currently below 4 months.
Despite low inventory, the region’s sales continue to perform well. Residential pending sales have risen year-over-year for 49 consecutive months (since May 2014). June 2018 recorded a 16.24% increase, with 2,956 homes going under contract vs. 2,543 in June 2017. All seven of the region’s major cities experienced year-over-year increases, with Portsmouth and Hampton experiencing the most dramatic upswings of 51.16% and 23.12% respectively.
Residential settled sales also experienced year-over-year growth in June 2018, up 5.74% for the region. Of the area’s major cities, Virginia Beach was the only area to experience a decline in settled sales for June, down just .26%. Newport News and Suffolk experienced the greatest year-over-year gain for the month, up 16.74% and 16.47% respectively.
The region’s residential median sales price rose to $248,000 in June 2018, up 2.06% from a year ago. Of the major cities, Newport News’ median sales price rose the most at 10.47% year-over-year, while Suffolk, Portsmouth and Virginia Beach all experienced declines of less than 1%.